Impact of Covid-19 on Adventure Tourism Market

News / Impact of Covid-19 on Adventure Tourism Market

Global adventure tourism market size is predicted to reach $1,796,243.8 million by 2027

June 22 - According to a recent study done by Research Dive, the global adventure tourism market size is predicted to reach $1,796,243.8 million by 2027, at a 15.0% CAGR, growing from $609,000.0 million in 2019. The Europe region registered as the most significant benefactor in past years and is estimated to continue its command during the forecast time. Asia-Pacific region market was the second highest contributor to the market.

COVID-19 Effect on Adventure Tourism Market

The COVID-19 pandemic had an undesirable impact on the global adventure travel market growth in 2020. As per the World Travel and Tourism Council (WTTC), the number of adventure travelers has drastically declined due to the global lockdown and travel limitations. However, the global market will grow at a significant rate post the COVID-19 outbreak as market leaders are opting new strategies for safer travels. For instance, in May 2020, Abercrombie & Kent expanded their offering in the Alaska and American West by adding 6 new tailor-made adventure trips and 2 new great American road trips. The company also introduced new tailor-made trips through USA. The trip itinerary covers national parks in California, Arizona and Utah; wildlife experiences in Wyoming and Alaska; culinary tours and inspiring wine tours in Sonoma and Napa valleys. The opportunity to travel with customization will drive the market growth in the coming years.

Escalating interest to exploring new destinations is a major driving factor for the growth of the adventure tourism market

Adventurism tourism is a travel activity that includes cultural exchange, activities in the nature, and physical activity. It involves travel and exploration with a certain degree of risk and it may require physical strength and special skills. Further, adventure travelling is about interacting and connecting with new landscapes and cultures. Adhering to these aspects, adventure tourism has interested people from all walks of lives. Travelling reduces mental stress, tension, and anxiety levels leading to exponential growth of the market. In addition, it is a great escape for urban citizens. According to United Nations World Tourism Organization (UNWTO), international tourist arrivals worldwide reached about 1.1 billion and adventure tourism has increased by 5.0% in 2019 compared to that in 2018. These factors are accelerating the young age travelers to gain much excitement by stepping out from comfort zones, which is predicted to fuel the industry growth in the forecast time.

Potential risks engaged in adventure travel is the major restraint for the adventure tourism market

Some of the potential risks involved in adventure tourism are unpredictable climate changes, habitat loss and cultural & language loss. These factors are predicted to hinder the growth of the adventure tourism industry growth in the forecast years.

Incorporation of new technologies by the key operators is a significant growth opportunity in the market

Key operators are continuously adopting novel technologies like virtual reality, artificial intelligence, IoT and other technologies to provide advanced features to attract customers. Such initiatives are predicted to produce vast prospects for the adventure tourism market growth in the forecast years. For instance, adventure travel operators are focusing on virtual reality to offer realistic visual experience of adventure activities and natural surroundings.

Adventure Tourism Market, by Type

Soft type generated for major market size in past years

In 2019, the market for soft type sub-segment dominated the global market by producing highest revenue share, which was 60.9% and is predicted to maintain its constant growth throughout the analysis time. The growth of soft adventure sub-segment is by the virtue of lower risk rates and minimal experience requirement. The soft adventure travel will considerably gain popularity in the coming 10 years as young people who have experienced soft adventure travel tend to opt for it time and again.

Adventure Tourism Market, by Activity

Land based activity registered for the highest market share in the previous years

Land-based activity sub-segment generated the highest market size for adventure tourism. It was over $381,797.5 million in 2019 and is predicted to experience a constant growth throughout the forecast time. Huge demand for land-based activities such as cycling tours, trekking & wildlife safaris among the all age groups is significantly propelling the market growth in the forecast years. In addition, rising interest of people towards archeological expeditions, attending local fairs and bird watching are expected to fuel the demand for land-based activities. These factors are projected to drive the growth of the market in the forecast years.

Adventure Tourism Market, by Type of Traveler

Family sub-segment was the highest contributor to the market in 2019

Family sub-segment held an evident market share in the past years, it accounted to $168,069.8 million in 2019 and is anticipated to generate $555,461.2 million revenue by 2027. Adventure trips encourage children and family members to take up travel to experience new things together and enhance their family bond. Further, adventure trips open the doors of opportunities to spend quality time and create memories with loved ones. This factor is directly influencing families to go explore adventure travel. This will fuel the growth of the market in the forecast time.

Adventure Tourism Market, by Age Group

20 – 30 years age group generated for major industry size in 2019

In 2019, the 20-30 years age group registered for about 41.5% revenue share based on age group segment and is predicted to continue its constant growth during the forecast timeframe. As per the data, there has been about 17% - 21% growth in 20 – 30 years age group travelling over the last three years. This growth is majorly due to youngsters spending time on adventure travelling to explore new cultures and wildlife. This factor is predicted to bolster the growth of the market in the forecast time.

Adventure Tourism Market; Regional Insights

Europe will witness huge growth opportunities in the market during the forecast period

Europe held the highest revenue share of 30% the adventure tourism market in 2019, and is predicted to account for $632,996.3 million in 2027. On an average, Europe registers about 100 million trips per year. Europeans cherish the feeling of travelling to different places and hence, there is a huge demand for adventure tourism. This factor is predicted to drive the market growth in the Europe region. Further, rising number of online travel agents due to growth in the number of independent/solo travelers is anticipated to accelerate the market growth in the coming years.

Key Players in the Global Adventure Tourism Market

Product launches and R&D investments are some of the common strategies followed by key players

The global adventure tourism market players are Butterfield & Robinson Inc., MTSOBEK, Recreational Equipment, Inc., Topdeck Travel Limited, Lindblad Expeditions, ElderTreks, Austin Adventures, Intrepid Group, Abercrombie & Kent USA, LLC. And G Adventures.

Porter’s Five Forces Analysis for Adventure Tourism Market

• Bargaining Power of Suppliers: The market consists of huge number of small & medium and large dealers, and key players are launching new trips, resulting in Moderate bargaining power of suppliers • Bargaining Power of Consumer: Adventure tourism has huge number of purchasers and rising demand for adventure trips is resulting in High negotiating power of consumer • Risk of New Entrants: Growing demand for adventure travel due to rising consumer interest and existence of dominant players are delivering High risk of new participants in the market. • Threat of Substitutes: This market has average number of alternatives, and thereby there is Moderate threat of substitutes • Competitive Rivalry in the Market: Adventure tourism market has a large number of significant players. These players are profusely working on product advancements with plans of launching new trip destinations to increase their market growth. This factor is providing high rivalry between the players The intensity of rivalry in the market is HIGH.